President Tim Walberg, R-Mich., Attended the audience of the Chamber's Education and Workbobs Committee on “The State of American Education” in the building of the Ryaburn house office on Wednesday, February 5, 2025.
Bill Clark | CQ-Roll Call, Inc. | Getty images
The Republicans of the Education and Workers' Committee have released their plan To revise the country student loan and the financial aid system, calling for limits to students' loan and a reduction in Reimbursement options for borrowers.
GOP measurement, known as Student Success and Taxpayer Savings Plan, aims to help the Republicans to pass the President Donald TrumpTax reductions.
“For decades, the Congress responded to the student loans crisis by throwing more and more dollars of taxpayers to the problem – without tackling the profound causes of the fees of flèche,” said the chairman of the Tim Walberg committee, R -Mich., In a statement.
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The proposal immediately launched the warnings of consumer defenders, who said that the measures would deepen families of the affordability that already faced to pay for the college.
“The current proposal of the Committee would seriously restore access to the college by reducing financial assistance programs, eliminating the basic protections of consumers and making more difficult the reimbursement of student loans debt,” said Sameer Gadkaree, president and chief executive officer of the Institute for academic access and success.
Here are some of the proposals for republican legislation.
Caps on federal student loans
Under the proposal, undergraduate students will face a borrowing ceiling of $ 50,000 in federal student loans from July 1, 2026, while graduate students could not withdraw more than $ 100,000.
The current limits vary according to the factors, in particular the status of students and the year of schooling, but for many people, the ceilings will mean that they can borrow less.
These limits “will transfer loans from private student loans,” said higher education expert Mark Kantrowitz.
It is a concern for Kantrowitz and other consumer defenders, who point out that private student loans are delivered with much fewer borrower protections than federal student loans.
Fewer reimbursement plans, difficulties of difficulties
The GOP's proposal would reduce the number of reimbursement plans focused on existing income for new federal student loan borrowers in one. IDR plans are aimed at making payments affordable for borrowers by The cap of invoices to part of their discretionary income.
According to Kantrowitz, more than 12 million people were registered with IDR plans in September 2024.
This would also eliminate the reversal of unemployment and economic difficulties for federal student loan borrowers, on the debt removed during or after July 2025.
More requirements to receive a Pell grant
Complete eligibility for Pell subsidies would also force students to be registered at least 30 hours per academic year, against the current requirement of 12 hours per semester.
The Federal Program Pell Grant, signed in law in 1965, is one of the largest sources of financial assistance available for students. More than 6 million The undergraduate students received subsidies in 2020. The maximum PELL grant price is $ 7,395 For the reward year 2025-2010.
Meanwhile, subsidies would be widened for short -term training programs.
